Technicals for week ending – 04th August 2017.

Note : This is not a recommendation and I am not a registered analyst, these are just data points and an assessment of the positives and negatives from a longer term point of view.

Nifty Weekly

Chart 1 Nifty is in all-time high territory “and still” no point trying to predict a resistance zone. Immediate support comes in at the 9700 zone. For the purpose of trailing long term exits, well… the 40 week MA is my favourite but it seems far off for now. The range based super trend trailing stop is at 9558 for now. Break of supports as well as super trend would be a warning sign to keep a look out for.  

Chart 2 Nifty & all indices except Pharma are above their 40-week MA.

Chart 3 Nifty total returns-Bond ratio is above its 40-week MA indicating longer term outperformance for Nifty vs bonds.

Chart 4 Longer term intermarket strength is in Realty & Bank-Nifty.

Chart 5 Avg. & Median distance of all sectors from their 52 week closing highs decreased this week and is at -4.3% & -0.2%.

Chart 6 FII flows in Index futures segment is net long but a declining trend.